Connect with us

Hi, what are you looking for?

Opinion

A Wealth Tax? It’s Not a Good Idea

hristianin on Deposit Photos

Should we target millionaires and billionaires? After the last year in quarantine, the wealth gap has only grown more severe. There’s no doubt that there has to be some policy change to level the playing field, but wealth taxes do not work. Only 1 in 1,000 households would have to pay a wealth tax if we started one.

They work only in theory

Wealth taxes, in theory, seem like they would work. Let’s take money from people who have plenty and redistribute it. But there are several cases of countries instituting taxing the rich and watching their efforts fail. Many parts of Europe have tried wealth taxes before: Sweden, Germany and France are just a few that tried and, then, abandoned it.

Quantifying how much someone is worth

The biggest issue is finding out how much someone is worth. Which assets do you count? Billionaires have houses, yachts, airplanes, horses – You name it. You would need an extensive list of taxable assets to properly assess how much someone is worth.

Even then, the wealthy would park their money in whatever is not on the list. Only smart people become millionaires and billionaires. If boats are under the tax, they will buy hovercrafts. If horses are under the tax, they will buy cows. You get the point.

A wealth tax would drive out companies

When Sweden started a wealth tax, it was enough to push IKEA to Switzerland. If you enact this law in the United States, the wealthy will move their companies – and possibly their families – elsewhere. These losses will heavily outweigh any revenue brought in from the wealth tax.

Wealthy people move to where they don’t have to pay taxes. Why do you think Jeff Bezos and Bill Gates live in Washington State? You guessed it: no income tax. I don’t know what the solution to the wealth gap is, but I do know that it isn’t taxing the rich. What do you think?

13 hours ago
Three Black-Owned Home Decor Brands: Add These to Your List - https://t.co/UmDhVincUz
14 hours ago
Layoffs, Layoffs, Layoffs! Why the Media Industry Is Dying - https://t.co/nwW0sEYbUx
15 hours ago
Lil Nas X’s ‘Montero’ Controversy Isn’t a New Phenomenon. - https://t.co/Cv0ym9dJoV
16 hours ago
It’s a Big Deal: Amazon Union Vote in Alabama - https://t.co/1blEC5kdUT
1 day ago
Should Schools Teach Financial Literacy? This Would Be Key - https://t.co/DAUVuzgITA

You May Also Like

Opinion

I am a Robinhood user. I downloaded it to enter the world of investing. Some of my friends from college recommended it because it...

Bold TV

Welcome back to Bold TV! Join our hosts, David Grasso and Julia Sun, and watch live at 12PMEST on Facebook and Twitter. *Update: Watch...

Business

Have you ever heard that Denmark is the happiest nation in the world? In this segment on happiness, we hear from our guest host...

Politics

It’s almost been a year since the statewide lockdowns began to spread across the country. Since then, qualified Americans only received one stimulus payment....

Copyright © 2021 Bold TV. Bold TV is owned and operated by GenBiz Inc. a 501(c)(3) non-profit organization.